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CONTENTS Article - Introduction - Participation and unemployment - The impact of age on employment - Differences between men and women - Education makes a difference - What are the main industries of employment? - Employment outcomes change with remoteness - Indigenous regions and their different stories - Looking ahead Additional topics - Data quality - 2006 and 2011 Aboriginal and Torres Strait Islander Census counts - Community Development Employment Project (CDEP) Scheme Explanatory information - Data sources and definitions - Endnotes LABOUR FORCE PARTICIPATION RATES BY INDIGENOUS STATUS (a), 2011
Related terms Indigenous, non-Indigenous, employed, unemployed, education, participation rate, employment to population, Year 12, certificate level, industry, region, remote INTRODUCTION The wellbeing of Aboriginal and Torres Strait Islander peoples is linked to many different factors including culture, heritage, family, community, governance and health. Employment is also a key factor leading towards wellbeing. In addition to providing financial independence and raising living standards, being employed can be important for participating in society and improving physical and mental health.1 As well as the benefits to the individual, communities can also benefit from the opportunity to be part of the mainstream economy.2 There is a considerable gap between the labour force outcomes of Aboriginal and Torres Strait Islander peoples and those of non-Indigenous Australians. In 2008, the Council of Australian Governments committed to halve the gap in employment outcomes between non-Indigenous and Aboriginal and Torres Strait Islander people by 2018.2 Using data from the 2011 Census of Population and Housing, this article explores labour force outcomes for the working aged Aboriginal and Torres Strait Islander population. Labour force outcomes discussed in this article predominantly relate to labour force participation and unemployment. Participating in the labour force means that the person is employed or unemployed. The unemployment rate is the percentage of the unemployed of those participating in the labour force. There is also some discussion of the proportion of the total population that are employed (employment to population ratio). Although not everyone in the Census reported their Indigenous or labour force status, the messages and observations about Aboriginal and Torres Strait Islander peoples' labour force outcomes in this article are in line with other data sources. Further information is available in the section 'Data quality'. PARTICIPATION AND UNEMPLOYMENT On 9 August 2011 (Census date), 56% of Aboriginal and Torres Strait Islander working age people were participating in the labour force. However around one in six of these people were unemployed (17.2%). Neither the Aboriginal and Torres Strait Islander labour force participation rate or the unemployment rate compares favourably to the equivalent non-Indigenous rates. Proportionally, fewer Aboriginal and Torres Strait Islander people were participating in the labour force, with the Aboriginal and Torres Strait Islander labour force participation rate 20.5 percentage points lower than the non-Indigenous rate (55.8% compared with 76.4%). Additionally, a greater proportion of the Aboriginal and Torres Strait Islander participating in the labour force were unemployed, with the unemployment rate more than three times higher (11.7 percentage points) than the non-Indigenous rate (17.2% compared with 5.5%).
(a) People aged 15-64 years of age. (b) Excludes those whose Indigenous and/or labour force status was 'Not Stated'. (c) The number of people who were either employed or unemployed (in the labour force) as a proportion of the total number of the population. (d) The number of people who were unemployed as a proportion of the total labour force. Source: Census of Population and Housing 2011 THE IMPACT OF AGE ON EMPLOYMENT The Aboriginal and Torres Strait Islander population has quite a different age structure to the non-Indigenous population, with younger people making up a greater proportion of its population. In 2011, around 18% of Aboriginal and Torres Strait Islander working aged people were aged 15-19, whereas just under 10% of the non-Indigenous population was of the same age group. POPULATION BY AGE BY INDIGENOUS STATUS (a)(b), 2011 Labour force participation is similar for many age groups In 2011, labour force participation rates for Aboriginal and Torres Strait Islander people were quite similar for people aged 20-24 right through to those who were aged 50-54, where around three of every five Aboriginal and Torres Strait Islander people participating in the labour force. Labour force participation for Aboriginal and Torres Strait Islander people outside of these age groups was lower. Aboriginal and Torres Strait Islander people who were aged 15-19 had a greater rate of people not in the labour force, due largely to many younger people still attending school. Beyond the age of 55, labour force participation reduced as people transitioned to retirement. Aboriginal and Torres Strait Islander peoples' labour force participation followed the same general trend seen in the non-Indigenous population, however always at a significantly lower level. Young people have a higher rate of unemployment In general, younger people have higher rates of unemployment than other age groups. As a higher proportion of the Aboriginal and Torres Strait Islander population is within the 15-24 year age group than occurs in the non-Indigenous population, a higher proportion will fall into the age group with the highest unemployment rate. This will contribute to the higher overall unemployment rate of the Aboriginal and Torres Strait Islander population. As Aboriginal and Torres Strait Islander people grow older, the unemployment rate decreases. In 2011, the unemployment rate was highest for Aboriginal and Torres Strait Islander people aged 15-19 (30.5%) and 20-24 (23.0%). Of the total number of Aboriginal and Torres Strait Islander working age people who were unemployed in 2011, 42% were aged 15-24, yet this age group only represented 32% of the Aboriginal and Torres Strait Islander working age population. This was similar to the non-Indigenous unemployed population with 36% of non-Indigenous working aged people who were unemployed being 15-24, yet the age group only represented 20% of the non-Indigenous working age population. The unemployment rate for non-Indigenous people aged 15-19 was 15.7%, and 9.4% for those aged 20-24. UNEMPLOYMENT RATE AND PERCENTAGE OF THE UNEMPLOYED BY INDIGENOUS STATUS AND AGE (a), 2011
Adjustments can be made for differences in age structure of the two populations As the age distribution is different between the Aboriginal and Torres Strait Islander and non-Indigenous populations, this can impact on a comparison between the two populations. When this difference in population structure is taken into account (age standardisation), the gap in unemployment rates between the two populations decreases. Instead of there being an 11.7 percentage point gap in the unemployment rates between the two populations, there is a 9.9 percentage point gap. Age differences between the Aboriginal and Torres Strait Islander and non-Indigenous populations do not impact on labour force participation comparisons as much as it does for unemployment. Instead of the participation gap being 20.5 percentage points between the two populations, it is 20.0 percentage points when age distribution is taken into account. DIFFERENCES BETWEEN MEN AND WOMEN Men represented just under half of the Aboriginal and Torres Strait Islander working age population (49%) in 2011, but just over half of the Aboriginal and Torres Strait Islander labour force (53%) and employed people (52%). These results are very similar to those for the non-Indigenous population. There were differences, however, between the composition of Aboriginal and Torres Strait Islander and non-Indigenous unemployed and labour force populations. For example, Aboriginal and Torres Strait Islander women accounted for 44% of Aboriginal and Torres Strait Islander working age people who were unemployed, whereas non-Indigenous women represented 47% of unemployed working age non-Indigenous people. In both the Aboriginal and Torres Strait Islander and non-Indigenous working age populations, there were more women not in the labour force than men in 2011, but the difference was less in the Aboriginal and Torres Strait Islander working population. For Aboriginal and Torres Strait Islander working age people, women accounted for 57% of people not in the labour force compared with 62% of the non-Indigenous working age population. LABOUR FORCE COMPOSITION BY INDIGENOUS STATUS BY SEX (a)(b), 2011
(a) People aged 15-64 years. (b) Excludes those whose Indigenous and/or labour force status was 'Not Stated'. Source: ABS 2011 Census of Population and Housing Participation in the labour force is different for men and women While non-Indigenous men and women had the same unemployment rate (5.5%), Aboriginal and Torres Strait Islander women had an unemployment rate that was 2.1 percentage points lower than Aboriginal and Torres Strait Islander men (16.1% unemployment rate for women and 18.2% for men). While half of Aboriginal and Torres Strait Islander men aged 15-64 were employed, there was a smaller proportion of women who were employed (43%). Both non-Indigenous men and women were more likely to be employed than not in the labour force (77% and 67% respectively employed). ABORIGINAL AND TORRES STRAIT ISLANDER LABOUR FORCE STATUS BY SEX (a)(b), 2011
One in six Aboriginal and Torres Strait Islander working men work part-time As with the non-Indigenous population, more Aboriginal and Torres Strait islander women worked part-time than men. Nearly half (44%) of Aboriginal and Torres Strait Islander employed women aged 15-64 worked part-time hours (less than 35 hours per week), almost double the proportion of men of the same age group (23%). While the proportion of Aboriginal and Torres Strait Islander women who worked part-time was very similar to that of non-Indigenous employed women (45%), the proportion of Aboriginal and Torres Strait Islander men who worked part-time (23%) was more than for non-Indigenous men (18%). HOURS WORKED IN THE WEEK BEFORE CENSUS DATE(a) BY ABORIGINAL AND TORRES STRAIT ISLANDER PEOPLE BY SEX (b)(c), 2011
EDUCATION MAKES A DIFFERENCE Gaining an educational qualification improves the labour market and broader life prospects of young people.3 In 2011, 44% of the Aboriginal and Torres Strait Islander population aged 15-64 had attained Year 12 or Certificate level II or above, nearly 30 percentage points less than the non-Indigenous rate (73%). Aboriginal and Torres Strait Islander people who had attained Year 12 or Certificate level II or above were more likely to be participating in the labour force than those who had not obtained these qualifications. More than three quarters (76%) of the Aboriginal and Torres Strait Islander population with these qualifications were participating in the labour force, while less than half (45%) of those without them were participating. Not only were Aboriginal and Torres Strait Islander people with these formal educational qualifications more likely to be in the labour force, they were more likely to be successful in finding employment. The unemployment rate for the Aboriginal and Torres Strait Islander population with at least Year 12 or Certificate level II or above was 11.4%, less than half that of the Aboriginal and Torres Strait Islander population without the qualification (24.3%). For the Aboriginal and Torres Strait Islander working age population who have attained an educational qualification higher than Year 12 or Certificate level II, the labour force participation and unemployment rates improve. For Aboriginal and Torres Strait Islander people who had completed a diploma or higher qualification, labour force participation was 83.9% and the unemployment rate dropped to 5.0%. This was one fifth of the unemployment rate of those without a Year 12 or Certificate level II. The large gaps that exist between the Aboriginal and Torres Strait Islander and non-Indigenous populations in the levels of labour force participation and unemployment lessen when comparing those who have a diploma or higher qualification. The non-Indigenous labour force participation rate for non-Indigenous people with a diploma or higher qualification was 86.4% and the unemployment rate was 3.5%. PROPORTION OF POPULATION(a) WORKING PART-TIME HOURS(b) BY EDUCATION QUALIFICATION BY INDIGENOUS STATUS AND SEX(c), 2011 (a) Employed people aged 15-64 years. (b) Worked more than 0 but less than 35 hours in the week before Census date, 9 August 2011. (c) Excludes those whose Indigenous and/or labour force status was 'Not Stated'. Source: ABS 2011 Census of Population and Housing WHAT ARE THE MAIN INDUSTRIES OF EMPLOYMENT? The top three industries of employment for Aboriginal and Torres Strait Islander working age people were the health care and social assistance industry (21,160 people), public administration and safety (18,510 people) and the education and training industry (12,970 people). These three industries were also the top three industries of employment for Aboriginal and Torres Strait Islander women. The top three industries of employment for Aboriginal and Torres Strait Islander men were construction (10,560 men), public administration and safety (9,750 men) and manufacturing (7,600 men). LEADING INDUSTRIES OF EMPLOYMENT FOR ABORIGINAL AND TORRES STRAIT ISLANDER PEOPLE(a)(b) BY SEX, 2011
While the mining industry was the 10th largest employer of Aboriginal and Torres Strait Islander people, it was the industry with the highest proportion of Aboriginal and Torres Strait Islander people in its workforce (3.1%). Other industries with comparatively high proportions of Aboriginal and Torres Strait Islander people in the workforce were public administration and safety (2.8%) and arts and recreational services (2.0%). EMPLOYMENT OUTCOMES CHANGE WITH REMOTENESS Different labour force outcomes occur in different geographic regions across Australia. For some remote areas there is a demand for labour (such as remote mining regions) and there may be higher participation and lower levels of unemployment for the population in these regions. Other remote regions have an underdeveloped labour market where people often do not actively look for work (and are therefore not classified as unemployed).4 In 2011, Aboriginal and Torres Strait Islander working age people living in major cities were more likely to be in the labour force than those living elsewhere, with 61% participating. Labour force participation of Aboriginal and Torres Strait Islander people was lowest in remote and very remote areas: around a half were participating in the labour force. Overall, labour force participation for Aboriginal and Torres Strait Islander working age people declined as remoteness increased. Aboriginal and Torres Strait Islander people living in major cities were also less likely to be unemployed, recording an unemployment rate of 14.7%. Outer regional areas recorded the highest unemployment rate, with around one in five Aboriginal and Torres Strait Islander people unemployed.
(a) People aged 15-64 years. (b) Excludes those whose Indigenous and/or labour force status was 'Not Stated'. Source: Census of Population and Housing 2011 Is Aboriginal and Torres Strait Islander employment changing?
(a) People aged 15-64 years. (b) Excludes those whose Indigenous and/or labour force status was 'Not Stated'. Sources: ABS Censuses of Population and Housing 2006 and 2011 INDIGENOUS REGIONS AND THEIR DIFFERENT STORIES When looking at the geographic distribution of Aboriginal and Torres Strait Islander people, Indigenous Regions can be used. They are often used in Census reporting and can provide smaller geographic area information about Aboriginal and Torres Strait Islander people. Indigenous Regions show a wide range of labour force outcomes for Aboriginal and Torres Strait Islander people, the diversity of which remoteness areas or jurisdiction reporting often do not reveal. INDIGENOUS REGIONS OF AUSTRALIA(a), 2011 (a) Excludes 'Other Territories' where Indigenous Region population is less than 1,000 people. A wide range of employment outcomes throughout Australia While unemployment rates inform about the prospects of successfully finding employment when looking for a job and labour force participation helps to understand the amount of people who are either looking for work or are employed, the proportion of employed people in the population (employment to population ratio) provides an informative summary of labour force outcomes. Aboriginal and Torres Strait Islander peoples' employment outcomes remain below that of the non-Indigenous population. Taking a closer look at smaller area data such as provided through Indigenous Regions suggests there are many different labour force conditions. Areas where labour force participation is higher will generally have proportionally more of the population working. In August 2011, the Australian Capital Territory (ACT) Indigenous Region had the highest labour force participation rate (70.2%) and the second lowest unemployment rate (9.3%) while the Torres Strait Indigenous Region in Queensland had the lowest unemployment rate (7.7%) and second highest labour force participation (68.3%) for Aboriginal and Torres Strait Islander people. While it may be expected that a region such as the ACT (including Canberra) will record such results, the Torres Strait Island Indigenous Region's strong Aboriginal and Torres Strait Islander employment outcome occurred in very remote Australia. The unemployment rate of Aboriginal and Torres Strait Islander peoples across Indigenous Regions varied by 21 percentage points, with the highest unemployment rate of 28.7% in the Cairns-Atherton Indigenous region and the lowest rate of 7.7% in the Torres Strait Indigenous Region, both in north Queensland. Across the Indigenous Regions, the lowest Aboriginal and Torres Strait Islander unemployment rate was higher than the highest non-Indigenous unemployment rate (6.6% NSW Central and North Coast).
(a) People aged 15-64 years. (b) Excludes those whose Indigenous and/or labour force status was 'Not Stated'. (c) Excludes 'Other Territories'. Sources: ABS Census of Population and Housing, 2011 Low unemployment rates do not mean high labour force participation rates Low unemployment and low labour force participation can occur at the same time in remote areas with underdeveloped labour markets. People without a job may not look for work because job opportunities are scarce, therefore excluding themselves from participating in the labour force (and consequently lowering the labour force participation rate). In August 2011, the West Kimberley Indigenous Region in Western Australia was one such remote area where Aboriginal and Torres Strait Islander unemployment (9.5%) was well below the national rate, but the labour force participation rate (48.2%) was also below the national rate. However, with non-Indigenous labour force participation at 49.7%, Aboriginal and Torres Strait Islander peoples' labour force participation was indicative of the participation for the whole population in the region. Overall, 43.8% of Aboriginal and Torres Strait Islander people in the West Kimberley Indigenous Region were employed and 48.8% of the non-Indigenous population. While these employment to population ratios were well below the ACT and Torres Strait Indigenous Regions, the 5 percentage point difference was the smallest employment to population ratio gap of all Indigenous Regions. The next closest was the Tasmania Indigenous region where for every 100 people, around 14 more non-Indigenous people were employed than Aboriginal and Torres Strait Islander people. PERCENTAGE OF ABORIGINAL AND TORRES STRAIT ISLANDER POPULATION IN EACH INDIGENOUS REGION WHO WERE EMPLOYED(a)(b)(c)(d), 2011
LOOKING AHEAD Many businesses now include a strategy for employment and engagement with Aboriginal and Torres Strait Islander people.5 With these strategies in place, initiatives such as the Remote Jobs and Communities Program, and the establishment of the Prime Minister's Indigenous Advisory Council6, may help put a focus on employment opportunities for Aboriginal and Torres Strait Islander people.
EXPLANATORY INFORMATION
ENDNOTES 1. Council of Australian Governments, National Disability Strategy, 2010 - 2020, pg. 42, viewed 18 November 2013 <www.dss.gov.au> 2. The National Indigenous Reform Agreement, viewed 30 October 2013, <www.coag.gov.au> 3. Foundation for Young Australians, 2012. 'How Young People Are Faring 2012', viewed 30 October 2013, <www.fya.gov.au> 4. ABS 2011, Labour Force Characteristics of Aboriginal and Torres Strait Islander Australians, Estimates from the Labour Force Survey, cat. no. 6287.0, <www.abs.gov.au> 5. Business Council of Australia, 2012. 'One country, many voices: BCA 2012 Indigenous Engagement Survey', viewed 4 November 2013, <www.bca.com.au> 6. Prime Minister of Australia, the Hon Tony Abbott MP, "Establishment of the Prime Minister's Indigenous Advisory Council", viewed 4 November 2013. <www.pm.gov.au> 7. ABS 2013, Estimates of Aboriginal and Torres Strait Islander Australians, June 2011, cat. no. 3238.0.55.001, <www.abs.gov.au> 8. Department of Social Services, 2011. 'Community Development Employment Projects Participant Supplement', viewed 11 November 2013, <www.dss.gov.au> 9. Closing the Gap: Prime Minister’s Report 2013, viewed 31 October 2013, <www.dss.gov.au> Document Selection These documents will be presented in a new window.
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4102.0 - Australian Social Trends, Nov 2013
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 20/11/2013
This page last updated 5 May 2014